Answers · UK 2025/26

How much Capital Gains Tax do I pay when I sell a second home in 2026/27?

When you sell a second home or buy-to-let in 2026/27, you pay CGT on the gain above the £3,000 annual exempt amount at 18% (within your basic-rate band) or 24% (above it). You must report and pay within 60 days of completion using the HMRC property service.

Last updated: 7 June 2026Last reviewed: 7 June 2026How we verify

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Selling a second home, holiday home or buy-to-let triggers Capital Gains Tax on the profit for 2026/27. Work out the gain by taking the sale price minus the original purchase price, minus buying and selling costs (legal fees, estate agent fees, Stamp Duty paid on purchase) and the cost of capital improvements such as an extension. Deduct the £3,000 annual exempt amount. The remaining gain is taxed at 18% to the extent it falls within your unused basic-rate band (total income plus gains up to £50,270) and 24% above that. For example, a £60,000 taxable gain for a higher-rate taxpayer costs £14,400 at 24%. Because the property is not your main residence, Private Residence Relief does not apply, although if it was once your main home you may get relief for the years you lived there plus the final 9 months of ownership. Married couples and civil partners can transfer a share of the property to each other before sale at no gain or loss, using both annual exempt amounts and potentially both basic-rate bands. Crucially, residential property gains must be reported and the tax paid within 60 days of completion through the HMRC online property service, separate from your annual Self Assessment. Use the Capital Gains Tax calculator to estimate the bill before you sell.